Worner backs HR stance as Seven ups profit

Seven West Media boss Tim Worner is confident the company has taken the necessary steps to rebuild its reputation following a drama filled year.

Seven West Media CEO Tim Worner walks past a Seven banner in Sydney.

Seven West Media CEO Tim Worner has defended the network's HR policy as he focuses on cutting costs. (AAP)

Seven West Media boss Tim Worner has denied there are any issues with the company's internal staff policies following the fallout from his affair with a former employee and the network's alleged mistreatment of a cadet journalist.

Releasing the company's half-year results on Tuesday, Mr Worner said he was confident all necessary steps had been taken to ensure employees understand how staff should be treated and said there were no issues with Seven's policies.

"I think we have definitely stressed our human resources policy, but actually, we found that they were fine," Mr Worner told analysts and media.

Mr Worne was disciplined and issued a statement professing his "shame and regret" after his affair with former network executive assistant Amber Harrison was revealed in December, 2016.

On Tuesday he rejected a journalist's query as to whether Seven had changed its HR policy to prevent any future issues arising.

"I think we have undertaken a little bit more work in terms of making sure that our people know what the rules are - but in terms of your question pointing to some sort of deficiency, I think that is wrong," he said.

The broadcaster won a court case, with costs, against Ms Harrison after she breached a confidentiality agreement and has since launched contempt proceedings against her in relation to more recent comments on social media and in broadcast interviews.

In September, Seven was hit with further allegations that it sacked Adelaide cadet journalist, Amy Taeuber, because she made a sexual harassment complaint against a male colleague.

The network denied the allegations and said Ms Taeuber had been dismissed because of a breach of contract.

On Tuesday Mr Worner said 2017 had been Seven's "toughest" year in recent history, despite the network lifting first-half profit to $100.7 million for the six months to December 31, from $12.4 million in the prior corresponding period when Seven was hit with writedown charges and other company costs.

He said a decline in some audience share had led to a 10.4 per cent fall in first-half revenue, to $809 million.

As a result, the company - which also runs The West Australian newspaper and Pacific Magazines - announced a temporary suspension on its dividend payout in order to prioritise "prudent capital management and balance sheet flexibility".

Seven has boosted its savings target from $105 million across the 2018 and 2019 financial years, to $125 million.

The company previously said it will find savings in staff cuts and the expiry of sport rights contracts.

"We are under no illusion as to the pace of change happening to our industry or what we have to do to match the speed of that change with our own company," Mr Worner said.

Seven has delivered a strong start to the rating season with the Winter Olympics, and the Commonwealth Games yet to come.

Mr Worner said the return to growth in free-to-air advertising had been "encouraging" and reaffirmed Seven's full-year underlying earnings guidance of between $220 million and $240 million.

Seven West shares gained 9.5 cents, or 18.6 per cent, to 60.5 cents, their highest level in five weeks.

SEVEN LIFTS PROFIT, SUSPENDS DIVIDEND

* Net profit of $100.7m v $12.4m

* Revenue down 10.4pct to $809m

* No interim dividend declared


Share
4 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world